Message from the Chairman of the TCPP Board of Trustees
As we continue to adapt to the challenges of the pandemic, the Trustees of the Teamsters Canadian Pension Plan (TCPP) would like to assure you that the TCPP continues to be secure and financially strong.
At the last valuation filed with regulators on December 31, 2019, the Plan had a funded ratio of over 122%. The latest estimate on the Plan’s funded ratio is above 100%. This buffer above 100% is in place to help manage the Plan through times of uncertainty such as the pandemic. Teamsters has been serving its members for over a century to provide fair opportunities in the workplace, equality and security. As part of our commitment, it is of paramount importance that our members have access to a pension during their retirement years.
Formed with just 500 members in 1981, the TCPP has grown by leaps and bounds to over 11,800 members (active, inactive and retired) today, made up of highly diverse groups spread across 8 divisions.
The low interest rate environment continues to present a challenge to many pension plans. Due to the Plan’s investment philosophy, declining interest rates had a lesser impact on this plan compared to most other pension plans in Canada and the United States. The Plan’s investment philosophy allows it to withstand positive or negative changes in interest rates without having a major impact on the Plan’s ability to pay pensions. The ageing of the workforce, longer life expectancies, increase in the cost of pension benefits to be earned in the future due to the current economic situation and numerous changes in pension regulations across Canada have also put pressure on all Canadian pension plans. With the help of its professional advisors, we are proud to say that despite the various challenges faced by the plan, our members can retire with dignity and with an adequate pension.
The Trustees of the TCPP are committed to ensuring the plan continues to remain sustainable in the long term to deliver the promised benefits. This is what Unions do – to represent our members’ best interests – every second of every day, now and into the future!
Chairman, TCPP Board of Trustees